Capital Appreciation Limited (JSE:CTA) News - Unaudited interim condensed consolidated financial results for the six months ended 30 September 2021 and dividend Capital Appreciation Limited Incorporated in the Republic of South Africa Registration number: 2014/253277/06 JSE share code: CTA ISIN: ZAE000208245 "Capprec" or the "Company" UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021 AND CASH DIVIDEND DECLARATION Operational features - Accelerating digitalisation intensified the demand for Capital Appreciation's products and services - Terminal sales for the current six months exceeded 2021 full-year sales - Android terminals enjoy significant demand - Strong acceleration for the Software division in the second quarter - Growing international income, supported by a new office in Amsterdam - Solid business pipeline across all businesses - Improved operating margins due to scale benefits and operating efficiencies - Strong cash conversion continues, consistent with prior periods - Robust growth in sales resulted in large receivables at period-end, which have since converted into cash - Cash available for reinvestment R589 million (29 November 2021) Financial features September September 2021 2020 % change Revenue (R'million) 439.4 323.7 35.7 Trading profit (R'million) 147.5 88.1 67.4 EBITDA (R'million) 138.7 81.6 70.0 Operating profit (R'million) 119.2 64.5 84.9 EPS (cents) 7.44 4.45 67.2 HEPS (cents) 7.43 4.45 67.0 Trade and other receivables (R'million) 181.2 92.6 95.7 Interim dividend (cents) 3.75 2.50 50.0 Net asset value (cents) 117.0 108.0 8.3 Interim period performance Capital Appreciation's interim results to 30 September 2021 reflect an acceleration in commercial activity and strong demand for the Group's innovative technology products and turnkey solutions. Capital Appreciation continued to attract a considerable number of new customers to its client base of blue-chip institutions in the banking, financial services, retail, telecommunications, and healthcare sectors and benefited from a strong pipeline of terminal orders, as well as pleasing growth in terminal transaction income. Its Software division also experienced a significant increase in cloud migration projects and demand for digital transformation support. Capital Appreciation remains highly cash generative. Trade and other receivables doubled in the reporting period on the back of large terminal sales, also impacting cash and cash equivalents. The majority of trade receivables converted into cash post-period-end and cash balances at 29 November increased to R589 million and 48.4 cents per share. Digital transformation as well as an acceleration in demand for electronic payments, cloud services, and related advances are creating numerous opportunities for the Group and continue to support robust growth prospects over the medium term. Dividends The Board has pleasure in announcing that an interim dividend of 3.75 cents per ordinary share has been declared for the six months ended 30 September 2021 (September 2020: 2.50 cents per ordinary share). We note the following: - Dividends are subject to dividends withholding tax. - The payment date for the dividend is Tuesday, 28 December 2021. - Dividends have been declared out of profits available for distribution. - Local dividends withholding tax is 20%. - The gross dividend amount is 3.75 cents per ordinary share, which is 3.00 cents per ordinary share net of withholding tax. - Capital Appreciation has 1 310 000 000 ordinary shares in issue at the declaration date. - Capital Appreciation's Income Tax Reference Number is 9591281176. The salient dates relating to the dividend are as follows: Last day of trade cum dividend Tuesday, 21 December 2021 Shares commence trading ex-dividend Wednesday, 22 December 2021 Dividend record date Friday, 24 December 2021 Dividend payment date Tuesday, 28 December 2021 Share certificates for ordinary shares may not be dematerialised or rematerialised between Wednesday, 22 December 2021 and Friday, 24 December 2021, both days inclusive. Short-form notice The contents of this short-form announcement are the responsibility of the Board of Directors of the Company. Shareholders are advised that this short- form announcement represents a brief summary of the information contained in the full announcement, published on https://senspdf.jse.co.za/documents/2021/jse/isse/ctae/HY2022.pdf and on Capital Appreciation's website www.capitalappreciation.co.za. The full announcement is available for inspection at the registered office of the company during business hours and at no charge. Investors and/or shareholders may request copies of the full announcement by contacting the Company Secretary, details of whom are set out below. Any forecast financial information contained in this announcement is the responsibility of the directors and has not been reviewed or reported on by the external auditors. The directors of Capital Appreciation take full responsibility for the preparation of this report and that the financial information has been correctly extracted from the underlying group financial statements. Any investment decisions by investors and/or shareholders should be based on a consideration of the full announcement as a whole and shareholders are encouraged to review the full announcement as directed above. Signed on behalf of the Board Michael (Motty) Sacks Michael Pimstein Chairman Joint Chief Executive Officer Bradley Sacks Alan Salomon Joint Chief Executive Officer Chief Financial Officer Johannesburg, 30 November 2021 Registered office: 1st Floor, 61 Katherine Street, Sandton, 2196 Directors: MI Sacks# (Chairman), MR Pimstein* (Joint Chief Executive), BJ Sacks* (Joint Chief Executive), AC Salomon* (Chief Financial Officer), MB Shapiro*, B Bulo#, KD Dlamini#, JM Kahn#, EM Kruger#, RT Maqache#, VM Sekese#, CL Valkin# * Executive, #Non-executive Company secretary: PKF Octagon, PeterKatz@PKFoctagon.com Transfer secretaries: Computershare Investor Services Proprietary Limited Sponsor: Investec Bank Limited Auditor: Ernst & Young Inc. Date: 30-11-2021 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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